There are 1000 labourers in a factory. The factory supervisor wants to find out the typical productivity of a worker. Which measure of central tendency should he use?
In problems where individual observations are not important and we wish to find out a ‘typical’ observation, the median is more appropriate.
Example: Finding the typical productivity rate of workers, average wage in a country, etc. These are situations where extreme values may be there.
So, rather than the mean, we take the median as a better measure of central tendency.